Dublin Report: Elan returned to favour with investors once more as its multiple sclerosis drug Tysabri looked set to return to the market.

The highly volatile stock was in good demand throughout the day in Dublin and New York, with likely approval from the US Food and Drug Administration offering investors a basis to evaluate the company's future progress.

The shares rose by 15 per cent in Dublin, rising to €13, up €1.70 on the back of the renewed buying interest.

Otherwise, the banks had a good day with AIB putting in the strongest performance.

The stock gained 18 cent to €19.80.

Bank of Ireland gained two cent to €14.77.

Anglo Irish Bank was nine cent better at €13.39 while Irish Life & Permanent was one cent better at €18.36.

Insurer FBD lost ground however, closing at €40, down 45 cent.

CRH made progress with the stock gaining 31 cent to end at €26.90.

Buying interest also continued in Eircom with dealers reporting some activity, possibly from Babcock & Brown, which has been building a stake in the firm. The shares closed unchanged at €2.20.

The food stocks enjoyed a mixed performance.

Glanbia was unchanged at €2.55, while Greencore added four cent to €3.64.

Kerry was unchanged at €18.75 while IAWS shed 16 cent to €14.41.

Fyffes was also in negative territory losing two cent to €2.20.

DCC shed 10 cent to €19.30 and Grafton was unchanged at €10.50.

Amongst the other stocks traded, Independent News & Media was two cent weaker at €2.63, McInerney rose 12 cent to €13 while Paddy Power added 25 cent to €12.75.

Ryanair also made gains, closing four cent better at €7.77.